Barwa records QR1,405 million profits for 2010

The Barwa Group, one of Qatar’s global leading investment and real estate companies, has announced net profits of QR 1,405 million for the period January - December 2010.

The Barwa Group, one of Qatar’s global leading investment and real estate companies, has announced net profits of QR 1,405 million for the period January - December 2010, an 84% per cent increase over QR 766 net profits for the corresponding period in 2009. These results reflect Barwa’s continuing growth and its ability to achieve increasing returns to its shareholders. In 2010, earnings per share (EPS) reached QR 4.06, compared to QR 2.92 per share during 2009, a 39% increase. This was despite the increase in the company’s shareholding capital, through the acquisition of Qatar Real Estate Investment Company (Al Aqaria).

The company’s total assets reached QR74 billion, a 111% per cent increase over QR35 billion as at 31 December 2009. Further, total revenues increased to QR8 billion, compared to QR 3 billion in 2009.

Increased revenues from rents and services and profit on the sale of properties and projects and sale of Barwa’s stake in a subsidiary, along with other exceptional returns resulting from Barwa being exempted from some commitments, led to this increase in net profits during 2010.

The acquisition of Al Aqaria - completed in May 2010 - positively contributed to net profits by QR509 million. In addition, the acquisition of 60% of Barwa Al-Khor Co., led to gains amounting to QR2.2 billion. Barwa Bank also acquired First Leasing Co. and First Finance, which led to increased revenues as well as to net profits, and contributed to an increase in the overall asset base of the company.

Barwa adopted a strategy during 2010 to implement internationally recognized accounting standards in making reserves and allocations, while maintaining the best results, profitability and earnings per share.

Other highlights for 2010 included the completion of Masaken Al Sailiya and Barwa Village developments in Qatar, the purchase of the Park House plot in London’s Oxford Street, and the closure of the Shariah compliant Barwa Gazprombank Russia Real Estate Fund.